The Central Bank of Ireland has appointed an administrator to CBL Insurance Europe dac (CBLIE) to avoid a disorderly failure of the company.
The bank stated that CBL Insurance has breached several regulatory requirements and is in a distressed financial position. As per the bank, without an administrator, the insurance company could be in a disorderly failure.
Last week, the Irish central bank ordered CBLIE to stop writing new business immediately, after reviewing the company’s reserves.
Kieran Wallace of KPMG has been appointed as provisional administrator.
The Central Bank stated that it has taken this step to protect the policyholders, as existing policies still continue to remain in force. But, it is recommending the policyholders to contact the insurance company to arrange for an alternative cover, as soon as possible.
The bank claims to have been engaging with the insurance company for several months now seeking remedy for its regulatory issues. But, the inability of CBLIE has forced the bank to have an administrator be appointed, stated the Central Bank.
The central bank stated the insurance company failed in making adequate provision for debts, including contingent and prospective liabilities.
Business was conducted in a manner which led to jeopardise or prejudicing the rights and interests of CBLIE’s policyholders.
Regarding the next steps, the bank intends to publish on its website centralbank.ie, the underlying affidavit by Lisa O’Mahony of the Central Bank’s Insurance Supervision Division, after the full hearing of the application for the administration of CBLIE is completed.
Last week, the High Court of New Zealand has also placed CBL Insurance Limited, the parent company in interim liquidation, after it received an application from the Reserve Bank of New Zealand. CBL Insurance is one of the major reinsurers to CBL Insurance Europe DAC
The Central Bank of Ireland has started engaging with the Reserve Bank of New Zealand, EIOPA and other European Regulators.
Image: CBL Insurance Europe falls into administration in Ireland. Photo: Courtesy of Central Bank of Ireland.